Seal of the  State of Connecticut, Office of the State Comptroller

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER

OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775

MARK OJAKIAN
DEPUTY COMPTROLLER
WYMAN PROJECTS BUDGET DEFICIT OF $361.4 MILLION
Contact: Steve Jensen
860-702-3308

State Comptroller Nancy Wyman today projected the state will end the 2003 fiscal year with a budget deficit of $361.4 million.

"I expect the state economy to show modest growth over the next year," Wyman said. "But even with some small percentage gains in the major tax categories, I do not expect revenues to keep pace with government spending."

Wyman's deficit estimate is about $80 million higher than that issued recently by the governor's budget office, the Office of Policy and Management (OPM). She said the main reasons for the difference is her expectation that the income tax and corporation tax will grow more slowly than OPM is projecting.

Wyman said she expects the income tax will bring in $48 million less than OPM's estimates, and the corporation tax about $35 million less.

Wyman also expressed concern that cost overruns and overly optimistic savings targets built into the current budget could drive the deficit even higher in coming months.

For the 2002 fiscal year that ended June 30, the state had a net deficit of $222.4 million. The gross 2002 deficit was $817 million, but the legislature voted to use the entire balance of $595 million in the state's Rainy Day Fund to cover most of the shortfall.

The remaining $222.4 million deficit will be financed with the issuance of notes during the current year.

The State Comptroller appreciates input on this and other issues from residents of the state. Please feel free to contact her office by phone - (860) 702-3300; mail - OSC, 55 Elm Street, Hartford, CT 06106; or, via E-mail - osc.opinions@po.state.ct.us

Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.

For Immediate Release
September 3, 2002

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